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Business and Competitive Analysis: Effective Application of New and Classic Methods, Second Edition

Book Description

Meet any business or competitive analysis challenge: deliver actionable business insights and on-point recommendations that enterprise decision makers can’t and won’t ignore! All you need is one book: Business and Competitive Analysis, Second Edition. This generation’s definitive guide to business and competitive analysis has now been thoroughly updated with additional methods, applications and examples. Craig S. Fleisher and Babette E. Bensoussan begin with a practical primer on the process and context of business and competitive analysis: how it works, how to avoid pitfalls, and how to communicate results. Next, they introduce their unique FAROUT method for choosing the right tools for each assignment. The authors then present dozens of today’s most valuable analysis methods. They cover “classic” techniques, such as McKinsey 7S and industry analysis, as well as emerging techniques from multiple disciplines: economics, corporate finance, sociology, anthropology, and the intelligence and futurist communities. You’ll find full chapters outlining effective analysis processes; avoiding pitfalls; communicating results; as well as drill-downs on analyzing industries, competitive positioning, business models, supply chains, strategic relationships, corporate reputation, critical success factors, driving forces, technology change, cash flow, and much more. For every method, Fleisher and Bensoussan present clear descriptions, background context, strategic rationales, strengths, weaknesses, step-by-step instructions, and references. The result is a book every analyst, strategist, and manager can rely on – in any industry, for any challenge.

Table of Contents

  1. About This eBook
  2. Title Page
  3. Copyright Page
  4. Praise for the Second Edition of Business and Competitive Analysis
  5. Praise for the First Edition of Business and Competitive Analysis
  6. Dedication Page
  7. Contents
  8. Acknowledgments
  9. About the Authors
  10. Preface
    1. How to Use the Book
  11. Section 1: Essentials of Performing Business and Competitive Analysis
    1. 1. Business and Competitive Analysis: Definition, Context, and Benefits
      1. Understanding the Terminology
        1. Competitive
        2. Strategic
        3. Analysis
        4. Intelligence
      2. Analysis as a Component in the Intelligence Cycle
      3. Competitive Analysis and Decision Making
        1. The Competitive Context Facing Contemporary Enterprises
        2. Contemporary Context Facing the Analyst
      4. Shifting Organizational Priorities for Analysts and Analysis
      5. Summary
      6. References
      7. Endnotes
    2. 2. Performing the Analysis Process
      1. Understanding the “Customers” of Your Analysis Work
        1. Defining the Analysis Problem
        2. Identifying the Scope of the Analysis
      2. Intelligence Analysis at Differing Organizational Levels
        1. Strategic Intelligence Analysis
        2. Tactical Intelligence Analysis
        3. Operational Intelligence Analysis
        4. Micro Intelligence Analysis
      3. Evaluating the Inputs to Analysis
      4. Making Sense of the Analysis
        1. Facts
        2. Perceptions
        3. Beliefs
        4. Assumptions
        5. Projections
        6. Synthesis
      5. Infrastructure to Support the Analysis Process
        1. Intelligence Solutions
        2. Limitations of Intelligence Solutions
        3. Managing the Internal Network
        4. Developing and Managing the External Network
        5. Proactivity, Efficiency, and Perpetual Learning
      6. Summary
        1. Fleisher and Bensoussan’s 10 Commandments for Business and Competitive Analysis
      7. References
      8. Endnotes
    3. 3. Avoiding Analysis Pitfalls by Developing Analytical Fitness
      1. Trade-Offs Made by Analysts
      2. Analysis of Failure
        1. Failure Location
        2. Sources of Failure
      3. Four-Level Hierarchical Model of Analysis Failures
        1. Individual Analyst-Level Failures
        2. Analysis Task-Level Failures
        3. Internal Organizational-Level Failures
        4. External Environment-Level Failures
      4. The Movement to a New Generation of Analysis
      5. Overcoming the Barriers and Improving Performance through Developing Analytical Fitness
      6. Summary
      7. References
      8. Endnotes
    4. 4. Communicating Analysis Results
      1. The Art of Effective Communication
      2. Packaging the Results of Your Analysis
      3. Delivering the Message
        1. Face-to-Face Briefings
        2. Written Reports and Briefings
        3. Presentations in Meetings, Seminars, and Workshops
        4. E-Mail/Instant Messaging
        5. Web-Based Intelligence Solutions and Systems
        6. Exercises and Planning Sessions
      4. Common Products and Reports Used by Analysts
        1. News Bulletins and Newsletters
        2. Assessments
        3. Competitor Profiles
        4. Battlecards
        5. Strategic Impact Worksheets
        6. Intelligence Briefings
        7. Situation Analysis
        8. Special Intelligence Summaries
      5. Creating the Report
      6. Communication Difficulties Faced by Analysts
      7. Effective Listening and Answering the Questions of Decision Makers
      8. Conduct Communication Follow-Up and Gather Feedback
      9. Pragmatic Considerations
      10. Summary
      11. References
      12. Endnotes
    5. 5. Applying the FAROUT Method
      1. Applying the Techniques
      2. An Evaluation Scheme for Assessing the Adequacy of Tools and Techniques: FAROUT
        1. Using the FAROUT Rating System
      3. References
      4. Endnotes
  12. Section II: New and Classic Methods of Business and Competitive Analysis
    1. 6. A Better SWOT Analysis
      1. Background
      2. Strategic Rationale and Implications
      3. Key Intelligence Topics and Questions
      4. Strengths and Advantages
      5. Weaknesses and Limitations
      6. Process for Applying the SWOT Technique
      7. Worksheet
      8. FAROUT Summary
      9. Related Tools and Techniques
      10. References
    2. 7. Analysis of Competing Hypotheses
      1. Background
      2. Strategic Rationale and Implications
      3. Key Intelligence Topics and Questions
      4. Strengths and Advantages
      5. Weaknesses and Limitations
      6. Process for Applying the Technique
        1. Step 1: Identify the Possible Hypotheses to Be Considered
        2. Step 2: List the Significant Evidence in Support of and Against Each Hypothesis
        3. Step 3: Prepare a Matrix with Hypotheses Across the Top and Evidence Down the Side
        4. Step 4: Refine the Matrix
        5. Step 5: Draw Tentative Conclusions About the Relative Likelihood of Each Hypothesis by Trying to Disprove It
        6. Step 6: Analyze How Sensitive Your Conclusion Is to a Few Critical Pieces of Evidence
        7. Step 7: Report Conclusions
        8. Step 8: Identify Milestones for Future Observation That May Indicate Events Are Taking a Different Course Than Expected
      7. Summary
      8. Worksheet
      9. FAROUT Summary
      10. Related Tools and Techniques
      11. References
    3. 8. Benchmarking Analysis
      1. Background
      2. Strategic Rationale and Implications
        1. Taxonomy of Benchmarking
      3. Key Intelligence Topics and Questions
      4. Strengths and Advantages
      5. Weaknesses and Limitations
      6. Process for Applying the Technique
        1. Step 1: Identify the Processes That Need to Be Benchmarked
        2. Step 2: Identify Performance Measures
        3. Step 3: Evaluate Your Own Firm’s Capabilities
        4. Step 4: Identify Firms to Be Benchmarked
        5. Step 5: Conduct Research of Selected Firms
        6. Step 6: Analyze the Collected Data and Develop an Action Plan
      7. Worksheet
      8. FAROUT Summary
      9. Related Tools and Techniques
      10. References
    4. 9. Business Model Analysis
      1. Background
      2. Strategic Rationale and Implications
        1. The Business Model
        2. Classification of Business Models
      3. Key Intelligence Topics and Questions
      4. Strengths and Advantages
      5. Weaknesses and Limitations
      6. Process for Applying the Technique
        1. Step 1: Articulate the Value Proposition
        2. Step 2: Specify the Target Segment
        3. Step 3: Determine Competitors
        4. Step 4: Evaluate the Value Chain and the Cost Model
        5. Step 5: Evaluate the Value Network
        6. Step 6: Determine the Revenue Model for the Firm
        7. Step 7: Determine the Critical Success Factors for the Industry
        8. Step 8: Complete an Analysis Grid Detailing Each Element of the Business Model
      7. Worksheet
      8. FAROUT Summary
      9. Related Tools and Techniques
      10. References
    5. 10. Competitive Positioning Analysis
      1. Background
      2. Strategic Rationale and Implications
        1. Develop and Build on the Firm’s Position
        2. Maintain and Hold the Firm’s Strong Market Position
        3. Defend a Dominant Position
        4. Withdraw from a Market
      3. Key Intelligence Topics and Questions
      4. Strengths and Advantages
      5. Weaknesses and Limitations
      6. Process for Applying the Technique
        1. Step 1: Identify Current Strategy and Market/Product/Project Parameters
        2. Step 2: Conduct Analysis
        3. Step 3: Review Results and Formulate Positioning Strategy
      7. Summary
      8. Worksheet
      9. FAROUT Summary
      10. Related Tools and Techniques
      11. References
      12. Endnotes
    6. 11. Competitor Cash Flow Analysis
      1. Background
      2. Strategic Rationale and Implications
      3. Key Intelligence Topics and Questions
      4. Strengths and Advantages
      5. Weaknesses and Limitations
      6. Processes for Applying the Technique
        1. Future Cash Flow Analysis
        2. Tip Sheet on Cash Flow Analysis
      7. Worksheet
      8. FAROUT Summary
      9. Related Tools and Techniques
      10. References
    7. 12. Critical Success Factors Analysis
      1. Background
      2. Strategic Rationale and Implications
      3. Key Intelligence Topics and Questions
      4. Strengths and Advantages
      5. Weaknesses and Limitations
      6. Process for Applying the Technique
        1. Leidecker and Bruno’s Identification Techniques
        2. Determining Critical Success Factor Importance
      7. Worksheet
      8. FAROUT Summary
      9. Related Tools and Techniques
      10. References
      11. Endnotes
    8. 13. Driving Forces Analysis
      1. Background
      2. Strategic Rationale and Implications
      3. Key Intelligence Topics and Questions
      4. Strengths and Advantages
      5. Weaknesses and Limitations
      6. Process for Applying the Technique
        1. Step 1: Identifying an Industry’s DFs
        2. Step 2: Assessing the Impact of the DFs
      7. Worksheet
      8. FAROUT Summary
      9. Related Tools and Techniques
      10. References
      11. Endnotes
    9. 14. Event and Timeline Analysis
      1. Background
      2. Strategic Rationale and Implications
      3. Key Intelligence Topics and Questions
      4. Strengths and Advantages
      5. Weaknesses and Limitations
      6. Process for Applying the Technique
        1. Plot the Target Firm’s History of Key Events on a Line
        2. Develop a Chronological Table of Events
        3. Develop an Events Matrix
        4. Event and Causal Factors Analysis
      7. Worksheet
      8. FAROUT Summary
      9. Related Tools and Techniques
      10. References
      11. Endnotes
    10. 15. Historiographical Analysis
      1. Background
      2. Strategic Rationale and Implications
      3. Key Intelligence Topics and Questions
      4. Strengths and Advantages
      5. Weaknesses and Limitations
      6. Process for Applying the Technique
        1. Step 1: Develop a General Proposition About the Analytical Target
        2. Step 2: Collect Primary Information
        3. Step 3: Collect and Relate Secondary Information
        4. Step 4: Cross-Reference and Select the Best Sources for the Third Draft
        5. Step 5: Analysis, Validation, and Reporting
      7. Worksheet
      8. FAROUT Summary
      9. Related Tools and Techniques
      10. References
    11. 16. Indications and Warning Analysis
      1. Background
      2. Strategic Rationale and Implications
      3. Key Intelligence Topics and Questions
      4. Strengths and Advantages
      5. Weaknesses and Limitations
      6. Process for Applying the Technique
        1. Step 1: Establish a Set of Indicators
        2. Step 2: Establish Meaning Behind Indicators
        3. Step 3: Validate and Rank Indicators Against Threshold Levels to Determine When Warnings Need to Be Issued
        4. Step 4: Determine and Recommend Appropriate Firm Responses to the Warning
      7. Worksheet
      8. FAROUT Summary
      9. Related Tools and Techniques
      10. References
      11. Endnotes
    12. 17. Industry Fusion Analysis
      1. Background
        1. General Environment
        2. Operating Environment/Industry Analysis
        3. Internal Environment
      2. Strategic Rationale and Implications
      3. Key Intelligence Topics and Questions
      4. Strengths and Advantages
      5. Weaknesses and Limitations
      6. Process for Applying the Technique
      7. Worksheet
      8. FAROUT Summary
      9. Related Tools and Techniques
      10. References
    13. 18. Interpretation of Statistical Analysis
      1. Background
      2. Strategic Rationale and Implications
      3. Key Intelligence Topics and Questions
      4. Strengths and Advantages
      5. Weaknesses and Limitations
      6. Process for Applying the Technique
        1. Percentage Changes
        2. Percentiles and Quartiles
        3. Normal Distribution and Bell Curve
        4. Summarizing Data with One Value—Central Tendency
        5. Standard Deviation
        6. Comparing Data
        7. Regression Analysis
        8. Correlation
        9. P-Values
      7. Worksheet
      8. FAROUT Summary
      9. Related Tools and Techniques
      10. References
    14. 19. Linchpin Analysis
      1. Background
      2. Strategic Rationale and Implications
      3. Key Intelligence Topics and Questions
      4. Strengths and Advantages
      5. Weaknesses and Limitations
      6. Process for Applying the Technique
        1. Linchpin Assumption Sensitivity Analysis
        2. Process for Using Linchpin Analysis in Assessing Risk
      7. Worksheet
      8. FAROUT Summary
      9. Related Tools and Techniques
      10. References
    15. 20. McKinsey 7S Analysis
      1. Background
      2. Strategic Rationale and Implications
      3. Key Intelligence Topics and Questions
      4. Strengths and Advantages
      5. Weaknesses and Limitations
      6. Process for Applying the Technique
      7. Worksheet
      8. FAROUT Summary
      9. Related Tools and Techniques
      10. References
      11. Endnotes
    16. 21. Product Line Analysis
      1. Background
      2. Strategic Rationale and Implications
      3. Key Intelligence Topics and Questions
      4. Strengths and Advantages
      5. Weaknesses and Limitations
      6. Process for Applying the Technique
        1. Step 1: Initial Product Audit
        2. Step 2: Assess the Product Relative to Its Position in the Product Life Cycle
      7. Worksheet
      8. FAROUT Summary
      9. Related Tools and Techniques
      10. References
      11. Endnotes
    17. 22. Scenario Analysis
      1. Background
      2. Strategic Rationale and Implications
        1. Methods for Generating Scenarios
        2. Quantitative Method: Computer-Generated Econometric Model
        3. Qualitative Methods
      3. Key Intelligence Topics and Questions
      4. Strengths and Advantages
      5. Weaknesses and Limitations
      6. Processes for Applying the Technique
      7. Worksheet
      8. FAROUT Summary
      9. Related Tools and Techniques
      10. References
    18. 23. SERVO Analysis
      1. Background
        1. Strategy
        2. Environment
        3. Resources
        4. Values
        5. Organization
      2. Strategic Rationale and Implications
      3. Key Intelligence Topics and Questions
      4. Strengths and Advantages
      5. Weaknesses and Limitations
      6. Process for Applying the Technique
        1. Step 1: Evaluate the Current Performance of the Firm
        2. Step 2: Assess the Current Strategy and Discern Whether Change Is Necessary
        3. Step 3: Develop and Evaluate Strategic Options and Programs
      7. Worksheet
      8. FAROUT Summary
      9. Related Tools and Techniques
      10. References
      11. Endnotes
    19. 24. Shadowing
      1. Background
      2. Strategic Rationale and Implications
      3. Key Intelligence Topics and Questions
      4. Strengths and Advantages
      5. Weaknesses and Limitations
      6. Process for Applying the Technique
        1. Team Composition
        2. Team Structure
        3. Performance Goals
        4. Shadowing
        5. Developing a Shadow Market Plan
      7. Mini Case Studies
        1. Case 1: Deregulating Utility
        2. Case 2: Packaged-Food Multinational
        3. Case 3: Ready-to-Eat Foods
        4. Case 4: Pharmaceutical Firm
      8. Worksheet
      9. FAROUT Summary
      10. Related Tools and Techniques
      11. References
    20. 25. Strategic Relationship Analysis
      1. Background
      2. Strategic Rationale and Implications
        1. Purposes Served by SRs
        2. Two Key Strategic Relationship Processes
      3. Key Intelligence Topics and Questions
      4. Strengths and Advantages
      5. Weaknesses and Limitations
      6. Process for Applying the Technique
        1. Studying Your Own Firm’s Relationship Formation Readiness
        2. Studying a Rival’s Relationships
      7. Worksheet
      8. FAROUT Summary
      9. Related Tools and Techniques
      10. References
      11. Endnotes
    21. 26. Supply Chain Management (SCM) Analysis
      1. Background
      2. Strategic Rationale and Implications
      3. Key Intelligence Topics and Questions
      4. Strengths and Advantages
      5. Weaknesses and Limitations
      6. Process for Applying the Technique
        1. Rules and Tools
      7. Worksheet
      8. FAROUT Summary
      9. Related Tools and Techniques
      10. References
      11. Endnotes
    22. 27. Technology Forecasting
      1. Background
      2. Strategic Rationale and Implications
      3. Key Intelligence Topics and Questions
      4. Strengths and Advantages
      5. Weaknesses and Limitations
      6. Process for Applying the Technique
        1. 1. Expert Opinion
        2. 2. Trend Extrapolation
        3. 3. Growth Curves
        4. 4. Historical Analogy
        5. 5. Scenarios
        6. 6. Modelling, Simulations, and Gaming
        7. 7. Morphological Analysis
        8. 8. Relevance Trees
        9. 9. Monitoring
        10. 10. Creativity Stimulators
      7. Using the Information
      8. Worksheet
      9. FAROUT Summary
      10. Related Tools and Techniques
      11. References
    23. 28. War Gaming
      1. Background
      2. Strategic Rationale and Implications
      3. Key Intelligence Topics and Questions
      4. Strengths and Advantages
      5. Weaknesses and Limitations
      6. Process for Applying the Technique
        1. Step 1: Is a War Game the Way to Go?
        2. Step 2: Getting a Business War Game Off the Ground
        3. Step 3: Who Should Play?
        4. Step 4: Preparing for Your War Game
        5. Step 5: Playing the Game
        6. Step 6: After the Game
      7. Worksheet
      8. FAROUT Summary
      9. Related Tools and Techniques
      10. References
    24. 29. Win/Loss Analysis
      1. Background
      2. Strategic Rationale and Implications
      3. Key Intelligence Topics and Questions
      4. Strengths and Advantages
      5. Weaknesses and Limitations
      6. Process for Applying the Technique
        1. Step 1: Determine the Target Segments and Identify Prospects
        2. Step 2: Understand Internal Cultural Issues
        3. Step 3: Develop the Questionnaire
        4. Step 4: Prepare for the Interviews
        5. Step 5: Conduct Interviews
        6. Step 6: Analyze and Interpret
        7. Step 7: Disseminate
      7. Worksheet
      8. FAROUT Summary
      9. Related Tools and Techniques
      10. References
  13. Index